Persistent Dynamic Payment Service
First Claim
1. In a method of making a payment from a payer to a merchant in an online transaction over a first network, the transaction involving an online purchase and being of the type where the payment involves the beneficiary accepting a proposed payment in the form of an account number having a standard syntax, followed by the merchant requesting an authorization for the proposed payment from a financial institution, the improvement comprising the following acts performed by a trusted third party service:
- a) associating an identifier assigned to the payer with at least one valid account number and other information pertaining to the payer in a database accessible to the trusted third party service;
b) allowing the payer to initiate a persistent channel over the first network with the trusted third party service prior to completing the online purchase;
c) receiving a request from a Payment Processor for approval of the proposed payment pertaining to the account number, whereby the account number was submitted as the proposed payment in the online transaction, and wherein the account number is in the standard syntax and comprises routing information associated with the Payment Processor;
d) verifying the proposed payment by verifying that the persistent channel is available, and optionally contacting the payer over the persistent channel for additional verification, if additional verification is required by predetermined;
e) processing the request by identifying the at least one valid account number; and
f) transmitting an instruction to the Payment Processor wherein the content of said instruction depends on whether the transaction is verified or denied, and if the transaction is verified, the instruction comprises a valid account number associated with said identifier.
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Abstract
The invention comprises online methods, systems, and software for improving the processing of payments from financial accounts, particularly credit and debit card payments made from consumers to merchants in online transactions. The preferred embodiment of the invention involves inserting a trusted third party online service into the payment authorization process. The trusted third party authenticates the consumer and authorizes the proposed payment in a single integrated process conducted without the involvement of the merchant. The authentication of the consumer is accomplished over a persistent communication channel established with the consumer before a purchase is made. The authentication is done by verifying that the persistent channel is open when authorization is requested. Use of the third party services allows the consumer to avoid revealing his identity and credit card number to the merchant over a public network such as the Internet, while maintaining control of the transaction during the authorization process.
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Citations
19 Claims
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1. In a method of making a payment from a payer to a merchant in an online transaction over a first network, the transaction involving an online purchase and being of the type where the payment involves the beneficiary accepting a proposed payment in the form of an account number having a standard syntax, followed by the merchant requesting an authorization for the proposed payment from a financial institution, the improvement comprising the following acts performed by a trusted third party service:
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a) associating an identifier assigned to the payer with at least one valid account number and other information pertaining to the payer in a database accessible to the trusted third party service;
b) allowing the payer to initiate a persistent channel over the first network with the trusted third party service prior to completing the online purchase;
c) receiving a request from a Payment Processor for approval of the proposed payment pertaining to the account number, whereby the account number was submitted as the proposed payment in the online transaction, and wherein the account number is in the standard syntax and comprises routing information associated with the Payment Processor;
d) verifying the proposed payment by verifying that the persistent channel is available, and optionally contacting the payer over the persistent channel for additional verification, if additional verification is required by predetermined;
e) processing the request by identifying the at least one valid account number; and
f) transmitting an instruction to the Payment Processor wherein the content of said instruction depends on whether the transaction is verified or denied, and if the transaction is verified, the instruction comprises a valid account number associated with said identifier. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13)
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14. In a method for transferring funds between a payer having a payer'"'"'s account in a first institution said account being represented by a payer'"'"'s debit card number and a receiver having a receiver'"'"'s account in a second institution said receiver'"'"'s account represented by a receiver'"'"'s debit card number wherein the transfer is initiated by the payer on an on-line service and routed for processing between the first financial institution and the second financial institution by a Payment Processor, the improvement comprising the following acts performed by a trusted third party service:
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a) associating a proxy debit card number assigned to the receiver with at least one valid debit account number and other information about the receiver in a database accessible to the trusted third party service, wherein the proxy debit card number follows a standard syntax for debit cards and comprises routing information which allows it to be routed to the trusted third party service;
b) receiving a request from the Payment Processor pertaining to a payment intended for the proxy debit account number;
c) processing the request comprising finding the at least one valid debit account number corresponding to the proxy debit card number;
d) transmitting at least one instruction to the Payment Processor comprising a valid debit account number associated with the proxy debit account number. - View Dependent Claims (15, 16, 17, 18, 19)
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Specification